HYYY Token & Tokenomics

The HYYY protocol's tokenomics is designed with a focus on long-term sustainability and alignment between all stakeholders in our ecosystem. As we build the next generation of strategy-based synthetic dollars, our token model reflects our commitment to decentralization, stability, and community governance.

Token Overview

The HYYY token serves as the cornerstone of our protocol's governance and value accrual system. While initially non-transferable, HYYY tokens will play a crucial role in shaping the protocol's future through governance decisions and protocol parameter adjustments.

Distribution Model

Our token distribution is structured to ensure broad participation while maintaining strong alignment with long-term protocol success:

  • Protocol Treasury: 30% allocated for long-term protocol development and sustainability
  • Community Incentives: 25% reserved for user rewards and ecosystem growth
  • Team & Advisors: 20% with extended vesting schedules
  • Development Fund: 15% for ongoing technical development and innovation
  • Strategic Partners: 10% for future partnerships and ecosystem expansion

Governance Mechanics

HYYY token holders will have direct influence over critical protocol decisions, including:

  • Risk parameter adjustments for USDhy minting
  • Delta-neutral strategy modifications
  • Fee structure updates
  • Protocol upgrade proposals
  • Treasury fund allocation

Value Accrual

The HYYY token captures value through multiple mechanisms:

  • Protocol fee sharing from USDhy minting and redemption
  • Performance fees from delta-neutral strategies
  • Revenue from AI-driven position management
  • Staking rewards through the stUSDhyy program

Vesting and Long-term Alignment

We've implemented a carefully structured vesting schedule:

  • Team tokens: 4-year vesting with a 1-year cliff
  • Strategic partners: 2-year vesting with quarterly unlocks
  • Development fund: 3-year linear vesting
  • Community incentives: Released based on protocol milestones

Sustainability Measures

Our tokenomics model incorporates several mechanisms to ensure long-term sustainability:

  • Dynamic emission scheduling based on protocol usage
  • Governance-controlled inflation parameters
  • Protocol-owned liquidity initiatives
  • Regular burning mechanisms tied to protocol revenue

This tokenomics structure reflects our commitment to building a sustainable, community-driven protocol that can serve as the foundation for the next generation of decentralized finance on Hyperliquid.